( positive resultsin this study Progen ...)Progen's Phase 2 Liver Cancer Trial Exceeds Efficacy Objective,Health

Treatment with the 250 mg dose resulted in thirteen patients discontinuing treatment early partly due to adverse events, possibly related to treatment at this dose level. This impacted the results seen from this treatment arm. The 250 mg dose of PI-88 reduced the disease-free rate by approximately 19 percent as compared to the control group, from 50 percent to 41 percent at 48 weeks, and was inseparable from the control group as to disease-free survival.

"These Phase 2 data clearly support the conclusion that PI-88 has the potential to extend the disease-free survival time of patients with post- resection liver cancer, who have few if any treatment options and a high likelihood of disease recurrence," said Professor Pei-Jer Chen, Director of the Medical Research Department of the National Taiwan University Hospital, and the trial's principal investigator. "We have waited a long time to see progress in this area of research and these data represent an important step in the development of treatments for post-resection liver cancer. PI-88 certainly warrants accelerated clinical investigation to enable us to develop a potential new treatment for liver cancer patients as quickly as possible."

"We are excited with the strong results PI-88 demonstrated in slowing the return of liver cancer," said Justus Homburg, Chief Executive Officer of Progen Pharmaceuticals. "These data give us the confidence to aggressively pursue the development of PI-88 towards registration and commercialisation."

"On the basis of these data and our discussions with FDA, we are no longer contemplating conducting stage 2 of this Phase 2 trial. We are now planning a multinational Phase 3 trial of PI-88 at a dose of 160 mg/day, to begin patient enrolment in the second half of 2007. The Phase 3 trial will be designed with overall survival and disease-free survival
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